In recent years, researches on selenium nanoparticle have gained more attention due to its important role in many physiological processes. Generally, selenium nanoparticle has a high level of absorption in regular supplementation comparative to selenium. Therefore it is all-important to develop new techniques to elevate the transportation of selenium compounds (selenoproteins, selenoenzymes, etc.) by increasing their bioavailability, bioactivity, and controlled release. SeNPs have special attention regarding their application as food additives and therapeutic agents. Selenium nanoparticle has biomedical and pharmaceutical uses due to its antioxidant, antimicrobial, antidiabetic, and anticancer effects. Selenium nanoparticle is also used to antagonize the toxic effect of chemical and heavy metals. SeNPs are beneficial for the treatment of water and soil contaminated with metals and heavy metals as it has adsorption capability. Selenium nanoparticle is synthesized by the bioreduction of selenium species (sodium selenate, sodium selenite, selenium dioxide, and selenium tetrachloride, etc.) by using bacteria, fungi, plant, and plant extracts, which have given hope for the bioremediation of selenium contaminated water and soils. This article reviews the procedure of selenium nanoparticle synthesis (physical, chemical and biological methods), characterization (UV-vis spectroscopy, transmission electron microscopy, Scanning electron microscopy, electron dispersive X-ray spectroscopy, X-ray diffraction, Fourier transform-infrared spectroscopy, etc.), with the emphasis on its role and application in health and environment.